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The Business of HockeyDiscuss the financial and business aspects of the NHL. Topics may include the CBA, work stoppages, broadcast contracts, franchise sales, NHL revenues, relocation and expansion.

Senators ownership threatens to sue over casino process;

It sounds like more posturing by Melnyk and being upset with the city's recommendation of supporting Rideau-Carleton Raceway for a casino site and not allowing Melnyk to bid for a location by the arena - and a nice new revenue stream to follow.

It sounds like more posturing by Melnyk and being upset with the city's recommendation of supporting Rideau-Carleton Raceway for a casino site and not allowing Melnyk to bid for a location by the arena - and a nice new revenue stream to follow.

May even lead to legal action so sadly it could get really messy for a while.

The Sens probably need additioals revenue streams to keep up with the ever increasing cap. We had these conversations during the lockout, not all teams will be able to keep up.
Eugene may be unable or unwilling to put more of his own money into the team, some might say he should not have to.
We will see what happens, I imagine other teams around the league will be in the same boat if they aren't already.

Shut out of casino bidding, Melnyk warns he can’t invest further in Ottawa
‘This might as well be an Eastern European country,’ Senators owner says

OTTAWA — Slapped by an overwhelming city hall vote against his plans to build a casino at his Kanata hockey arena, Ottawa Senators owner Eugene Melnyk said he won’t be able to invest any more deeply in the team or in the city.
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“There is no Plan C,” Melnyk said just before the vote.
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The Senators lose money as a hockey operation, Melnyk said (“If you heard a number, it would be staggering,” he said); although his Ottawa entertainment empire makes some money off concerts as well, that’s not the business it used to be. He’s set a $50-million cap on player salaries and can’t afford to spend more, retooling the team into a young, inexpensive one that’ll need some luck to win consistently.
It pleases Melnyk to own a hockey team and he doesn’t intend to sell or move the Senators, but without a “third revenue stream,” his options for expanding the empire and renovating the arena are limited. “It puts a whole damper on my enthusiasm that I came here with 10 years ago,” he said.

The city’s lawyer, Rick O’Connor, said most of Webber’s threats are empty. He couldn’t figure out how councillors could be personally sued for carrying out public duties in public, for one thing, and the city has legal advice in hand from outside firm Borden Ladner Gervais saying restricting the bidding to the raceway’s property isn’t an illegal subsidy (as it happens, the only extensive case law on the subject was set by the Ontario Court of Appeal as it ruled in the City of Ottawa’s favour on the redevelopment of Lansdowne Park).

And Webber, a lion of Ottawa planning law, seemed to catch only air with one swipe when he warned that city council wouldn’t get a chance to decide on rezoning the raceway land because it’s already zoned for a gambling operation. It is, O’Connor allowed, but only for 21 table games and the OLG anticipates more like 100.

Spectre of the Nordiques past. In the last days that was one of Aubut plans leverage the Nordiques to get a Casino license in Qc. Some would even go as far as saying he sold to Colorado out of spite instead of taking the local offer. He could not bare to not be "THE" guy who own the team.

The ontario government and OGLC (ontario lottery and gaming corporation) has decided to build two new megacasino's, one in toronto and one in ottawa.

In ottawa's case, many argue that we dont even need a new casino. There is a casino in gatineau already, and slots at the racetrack. Unfortunately, quebec gets the revenue from the casino in gatineau, and therefore ontario wants to build a casino to prevent that.

Rideau Carleton Raceway depends on the slots revenue to survive.

For whatever reason, OLGC and the ontario government have decided that there will be only one gambling location in ottawa, and therefore if RCR is not the location chosen, the slots will be shut down there.

Because of this, a lot of political support in ottawa has gotten behind the whole "save the historic rideau carleton raceway" movement.

The mayor has publicly and vocally supported the RCR location, and the council has now voted on making that the only location they will consider.

Melnyk has always seemed quite unstable, but he seems to be getting worse as his net worth decreases.

It's understandable, no? Most of these guys buy teams because they don't believe they will have to underwrite massive operational costs for long periods of time. The team needs to make sense within the context of their portfolio (if part of an arena, or vertically-integrated operation), or at least pay most of its own freight. Even billionaires get tired of underwriting the expenses over time. Couple that to declining net worth, and sure, he's going to pay closer attention.

It's understandable, no? Most of these guys buy teams because they don't believe they will have to underwrite massive operational costs for long periods of time. The team needs to make sense within the context of their portfolio (if part of an arena, or vertically-integrated operation), or at least pay most of its own freight. Even billionaires get tired of underwriting the expenses over time. Couple that to declining net worth, and sure, he's going to pay closer attention.

Of course it's understandable. I was just commenting that he always seems to be out there in the media making comments which could potentially be interpreted as somewhat controversial. He's definitely not the reclusive type of owner.

The ontario government and OGLC (ontario lottery and gaming corporation) has decided to build two new megacasino's, one in toronto and one in ottawa.

In ottawa's case, many argue that we dont even need a new casino. There is a casino in gatineau already, and slots at the racetrack. Unfortunately, quebec gets the revenue from the casino in gatineau, and therefore ontario wants to build a casino to prevent that.

Rideau Carleton Raceway depends on the slots revenue to survive.

For whatever reason, OLGC and the ontario government have decided that there will be only one gambling location in ottawa, and therefore if RCR is not the location chosen, the slots will be shut down there.

Because of this, a lot of political support in ottawa has gotten behind the whole "save the historic rideau carleton raceway" movement.

The mayor has publicly and vocally supported the RCR location, and the council has now voted on making that the only location they will consider.

Actually I should point out that there is potential more than just two casinos being proposed. Basically the Ontario government has said it will allow a one new casino in any "zone" (what constitutes a zone, I have no idea.) Waterloo region has vetoed a casino in the area, Hamilton on the other hand has said yes, but like Ottawa, it's preferred location is at Flamborough Downs.

So in recent years, OCC has killed Melnyk's MLS team and his casino. Makes you wonder about the viability of a team in Kanata, honestly.

Which is exactly what Melnyk is so discouraged over. "There is no plan C". Ten years of trying to build something out in Kanata only to be shot down at every turn. Some people say it's time to start thinking outside the box but I'm at a loss as to what other opportunity he could try to develop that would generate the kind of high-end clientele he seems to be targeting.

Of course it's understandable. I was just commenting that he always seems to be out there in the media making comments which could potentially be interpreted as somewhat controversial. He's definitely not the reclusive type of owner.

Gotcha. I like it when he speaks up. We get to hear things the NHL would rather not have owners discuss.

Some powerful interests in the Ontario Jockey Club, Harness Racing, Thoroughbred & Bloodstock Industries which has been on the decline for decades. Lobbyists. Winnipeg I think got it right. VLT's in an adjoining facility to the MTS. That area out around the now called Canadian Tire Centre, a coupla car dealerships etc, absolutely I see no harm in giving Melnyk the Green Light. Definitely needs something to help prop up the club.

Eugene Melnyk sure comes across as a real winner. First the guy tries to screw Jeff Hunt's group by demanding millions of dollars of funding for his failed Soccer only stadium in the middle of nowhere and now he is busy whining about Casinos. If the Senators were bought by a real owner like Jeff Hunt they might become a respectable organization. Until Eugene is replaced by a better owner the Senators will remain Canada's lame duck NHL franchise.

Eugene Melnyk sure comes across as a real winner. First the guy tries to screw Jeff Hunt's group by demanding millions of dollars of funding for his failed Soccer only stadium in the middle of nowhere and now he is busy whining about Casinos. If the Senators were bought by a real owner like Jeff Hunt they might become a respectable organization. Until Eugene is replaced by a better owner the Senators will remain Canada's lame duck NHL franchise.